By Paul A. Harris
St. Louis, Feb. 9 - Hydrochem Industrial Services Inc. priced $150 million of eight-year senior subordinated notes (Caa1/B-) at par to yield 9¼%, according to an informed source.
Price talk was 9¼% to 9½%.
Morgan Stanley ran the books for the Rule 144A/Regulation S issue. Credit Suisse First Boston was the co-manager.
Proceeds will be used to refinance existing debt and to help fund the acquisition of the company by Oak Tree Capital Management.
The Deer Park, Texas-based company is an industrial cleaning services provider.
| Issuer: | Hydrochem Industrial Services Inc.
|
| Amount: | $150 million
|
| Maturity: | Feb. 15, 2013
|
| Security description: | Senior subordinated notes
|
| Bookrunner: | Morgan Stanley
|
| Co-manager: | Credit Suisse First Boston
|
| Coupon: | 9¼%
|
| Price: | Par
|
| Yield: | 9¼%
|
| Spread: | 525 basis points
|
| Call features: | Callable after Feb. 15, 2009 at 104.625, 102.313, par on and after Feb. 15, 2011
|
| Equity clawback: | Until Feb. 15, 2008 for up to 35% at 109.250
|
| Trade date: | Feb. 9
|
| Settlement date: | Feb. 15
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Price talk: | 9¼%-9½%
|
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